Metaldyne posts $46.3 million quarterly loss

DETROIT -- Metaldyne Corp. said today that customer initiated production cuts caused third quarter losses to triple and led some customers to demand shorter payment terms.For the quarter ending Oct. 1, Metaldyne reported a $46.3 million net loss, or $1.08 per share, on revenue of $411.8 million, the company said in its quarterly statement filed with the U.S. Securities and Exchange Commission today. For the same period last year Metaldyne reported a net loss of $15.2 million or 36 cents per share on revenue of $402.5 million."With respect to our operating targets, in the second half of 2006, significantly lower production levels of the North America big three domestic manufacturers is contributing to large reductions in sales and profits," the company said in its quarterly report. "The reductions in earnings and cash flow have offset (at least temporarily) some of the liquidity generated in the early part of 2006."Metaldyne, which is not publicly traded, reports its financial performance with the SEC because it has publicly held debt.While Metaldyne said in its report that its management team believes it has enough cash on hand and access to capital for the foreseeable future, it also warned of potential problems if additional suppliers demand shorter payment terms."These same market conditions and their impact on our financial performance have caused some suppliers to demand shorter payment terms which would exacerbate the negative impact on our liquidity," Metaldyne said in its quarterly statement.Metaldyne also announced that its agreement to be acquired by Shizuoka, Japan-based Asahi Tec, which it had hoped to compete this month, has been delayed. The deal, which is backed by Asahi Tecs parent company, Belgium-based RHJ International, is now expected to close by Jan. 16.Metaldyne makes metal-formed and precision-engineered components used in transmissions, engines and chassis of cars and light trucks.Metaldyne, based in Plymouth, Mich., ranks No. 69 on the Automotive News list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $2.16 billion in 2005.You may e-mail Brent Snavely at bsnavely@crain.com

Metaldyne posts $46.3 million quarterly loss

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